Tamil Nadu has improved its SGST collection to a 20.12% level which is the highest among the states of similar status in the first half of the fiscal year, 2024-25. The preliminary details published by the C.A.G of India show that Tamil Nadu raised its SGST collection from 29,481.97 crores in the first half of 2023-2024 to 35,414.05 crores during the same period in this financial year.
Comparison with Other States
However, Tamil Nadu led the growth chart other major states also recorded substantial growth too:
Gujarat and Uttar Pradesh recorded more than 14% growth.
Maharashtra increased its index of growth by 13.46%.
Karnataka increased its growth rate to about over 10%.
As per India Ratings and Research, SGST collections form nearly half of the states own tax resources. The trend of growth for Tamil Nadu and others like Assam, and Maharashtra and Uttar Pradesh is consistent and strong in the measure of the year-on-year growth ranging between 13.3% and 50.8%.
Factors Behind Tamil Nadu’s Growth
As one of the officials, a senior officer from Tamil Nadu Commercial Taxes Department remarked, revenue collected from the state has increased quite substantially in the last few months owing a great deal to many administrative re-structures and certain strategies aimed at curbing the leakage of revenue.
- Formation of a Tax Research Unit:
A tax research unit was formed in December 2022 with the aims of investigating and resolving issues related to integrated goods and services tax.
This led to additional revenue through cross border IGST settlement where taxpayers including public sector companies were noticed reclaiming unutilized credits filed for IGST.
- A Big Data Analytics Unit:
Revenue leakage is identified using a specialized team who relies on data analytics tools.
Thorough investigation has improved revenual tax compliance and revenue collection further.
- Greater Administrative Effectiveness:
New Territorial and intelligence divisions created.
Recruitment for longstanding vacancies and clearance of promotion delays.
These measures improved compliance as well and revenue was increased.
Future Outlook
Even as the first half of 2024-25 will not have any major festive season, SGST collections from Tamilnadu have registered impressive growth. Officials are upbeat about the further growth in the second half as well due to enhanced compliance and better tax administration.
Key Highlights
| State | Growth Rate in SGST Collections |
| Tamilnadu | 20. 12% |
| Gujarat | 14%+ |
| Uttar Pradesh | 14%+ |
| Maharashtra | 13.46% |
| Karnataka | 10%+ |
Conclusion
In India, Tamil Nadu emerges as one of the states with the highest CAGR in SGST collection largely due to focus on data analysis, administrative changes and revenue enhancement measures. This best practice hones the state’s economic wellbeing and can be deployed by other states in improved revenue performance and compliance.
We also pay attention to SEO and ensure that the text matches with the knowledge of users and is of good quality.
